All Forum Posts by: Joshua Tessier

Oh and the reason it matter is you need to occupy it for a year on a primary residential mortgage.  After a year you can move anywhere but it’s that first year that you need to occupy so if you home owners insurance is for a owner occupied and you have a claim in the first 12 months well good luck!

You might want to double check this part. If you are putting down less than 20-25% you have an Owner occupied mortgage which seems to be what your describing based on your situation. People aren’t going to say it but I know several people have have purchased with owner occupied loans and then rented it out immediately. 

The first thing to keep it mind is technically it’s illegal but most likely you’ll get away with it. You’ll need to figure out how you are going to insure the property will it be Insured is owner occupied or will it be insured as a rental. I don’t know if the bank looks at this but if your saying it’s owner occupied and putting down 5% that might tip them off. Also I wonder if they check where the statement is going?  If they are sending it to your current rental but you also own right down the street why isn’t it going to the house you own?  I might over think this stuff but wanted to cross my T’s and dot my I’s when I might have though about doing something similar once 😉

Listen to "Rental Property owner & Real Estate Investor" Podcast Eposide 171 Leglized Marijuana & your investment Property.  It has ton's of great advice on this subject with some great tips of things to add into your lease.

Case by case is what can get you into a lot of trouble.  Blanket theory ensures your treating everyone equal  so if you get in a bind you can point to all your tenants and say they were all treated equal so anyone attempting to sue you has a higher bar to prove.

In my experience I have always heard 3X rent to income.  What my question is how are folks applying this same simple formula to families Vs Singles.  I don't want to get into discrimination etc etc but for a single occupant no children in a one bedroom vs a single dad with two kids in a three bedroom the life expenses are no where near the same so how do people adjust internally for that?

As for the felony talk to them ask them what it was about. For me violent crime i'd say no thank you. For drugs or other matters it might be worth giving them another shot.  In the end we all did something stupid when we were young if we learned and matured maybe it's worth it.

While my family doesn't discourage me it's very important to also consider other view points.  What if you never make a deal, what if your deal turn's into a lemon, what if your deal only turns out to be mediocre?  Taking risks in life isn't for those with thin skin.  Make sure you give each side a lot of thought.  I know I have gotten stuck on a few projects as timelines and budgets ballooned out of control.  At times it felt like WTF am I doing, allowing self doubt to enter and get the better of you could lead to trouble.  Be cautious but know yourself. 

I love to talk real estate and love tell people what i'm doing.  When they say i'm nuts I can't disagree but sometimes that's what it takes to make some big move in short periods of time!

Ouch, I’d put the pressure on the current tenant and say wtf this is the Ramifications that others Are now going to face because of you!  In the end I’d say with the tenants you have and let the others know ASAP. Also I’d only do a 6 or 18 month lease on units with high heating costs so it expires at the beginning of summer. Also look into weather efficiencies to reduce the heating costs and maybe keep the good tenant long term by offering a better product. The few thousand you spend would be covered by a single months vacancy. 

Thank you for the update as a NH landlord this is all great information.  It would be great to have someone do a writing tutorial of how they completed the eviction process.  I did three last month on a newly purchased building it had significantly under market rents and had lots of deferred maintenance.  I only needed to do the demand for rent and the eviction notice.  The first thing I did was to jack up rents with a 30 day notice to everyone.  My idea was if we ended up needing to go to court at least the rent that was accruing with now be at a much higher rate.  I served the notices myself by banging doors.  One agreed to move on and understood the work I was going to undertake would need her to vacate.  One was belligerent claimed the sheriff needed to serve him and he was going to ignore me.  I pushed back with the water is getting shut off to the building (I am re plumbing the entire building so have fun with no water here is your two week notice on that.)  I was extremely rigid with him and let him know there would be no staying for him.  The third tenant came up with the rent and we made a plan for her to stay an additional two months working around the construction but long term shes out too.  

It wasn't a fun process for anyone but I didn't need to go any further than that.  I would ensure your property manager is staying on top of them and ensuring that they know this isn't the end, that your intention is to evict if that is truly what you want.  The court will ensure they pay rent but at the end of the day someone needs to stay very much on top of them. Please keep us abreast of the process as someday we all might need this info.

Simple amend the purchase and sales agreement to include a statement saying something to the affect that purchase price will not be recorded with the MLS and fees to be paid by the buyer.

I think your getting a little ahead of yourself. Before you do a cash out refinance you should identify a deal. Don’t put your house at risk by doing a cash out refinance. If the property your going to buy would qualify for a 3% down house hack you might not need much money so why refinance before you know what you need?